No lease agreements, last month or security deposits

[Brian Davis]

I am closing on a 5 family very soon. It's my first buy and hold. All of the tenants are TAW with no lease agreements in place. There are no security deposits and no last months rent being held and the rents are well below market rents. My question is, what would be your strategy in getting at least last months rent from each tenant at the same time implementing a rent increase and having each sign a TAW. Would you just put it all on the line or would you structure a plan to have the last months rent paid over a certain period of time. They appear to be great tenants and we want to be reasonable with them. Many of them have been renting for 8 years plus. Any advice is greatly appreciated.